Ola Electric has scrapped its plans to launch electric cars to focus on its e-scooter business, according to a Reuters report. The Softbank-backed company is set to focus on its existing e-scooter business as it prepares for an initial public offering this year.

Ola Electric is India's largest electric two-wheeler manufacturer and competes with companies such as Ather Energy, which is currently preparing for an IPO. In 2022, Bhavish Aggarwal, the founder of Ola, had planned to launch an electric sports car in the next two years, but according to the report, the company abandoned it before the planned IPO.

The report states that the focus is on the two-wheeler market and there is a need to develop charging infrastructure as mass electrification is coming soon. According to another source in the report, the car project has been put on hold for at least two years and the company will focus on e-scooters and battery manufacturing.

According to multiple reports, the company is expected to launch its IPO at a lower valuation than its earlier estimate of $5.5 bn. Moneycontrol had reported that the company plans to launch its IPO in August. Ola Electric, a subsidiary of India-based ride-hailing platform Ola, has submitted its draft red herring prospectus for December 2023 to Sebi.